What is the role of an IRS Appeals officer?

• A. To independently review IRS determinations, consider new evidence, and attempt to settle disputes without litigation.
• B. To issue penalties unilaterally without review.
• C. To replace IRS functions and issue official tax assessments.
• D. To process payments exclusively.

Answer: (A)

An IRS Appeals officer works in the Office of Appeals to provide an impartial, independent review of IRS determinations after an examination or other action. The key idea is that they re-examine the case from a fresh perspective, can consider new evidence or facts that weren’t presented earlier, and aim to resolve the dispute through negotiation rather than litigation. The main goal is to settle issues with the taxpayer through conferences and negotiated settlements, if possible, to avoid going to court. They do not unilaterally issue penalties, they don’t replace IRS functions or issue official tax assessments, and handling payments isn’t their role.